EANS-News: UNIQA Insurance Group AG / capital ratios and risk position improve - earnings increase

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Financial Figures/Balance Sheet

UNIQA: capital ratios and risk position improve - earnings increase

· Group embedded value rises by 13.2 per cent · Profitability of new
business in life and health increase considerably · Economic capital
ratio (ECR) at strong 182.2 per cent according to internal steering
approach in 2015 · 2015 annual report - best year in the company's
history · Earnings before taxes: EUR 422.8 million · Premiums written
increased by 4.3 per cent to EUR6,325.1 million · Combined ratio
improved to 97.8 per cent

To mark the presentation of the annual report and the final figures
for 2015, UNIQA has also published the Group embedded value, capital
ratios and risk position of the past financial year today.

The market-consistent embedded value of the UNIQA Group after
minority interests improved by 13.2 per cent to EUR 4,725,3 million
in the year under review (2014: EUR 4,174,5 million). The
market-consistent embedded value, which is calculated on the basis of
international guidelines, represents the value of the insurance
policy portfolio and is composed of the net assets for life, health,
property and casualty insurance as well as the current value of
future income from the existing life and health insurance portfolio.

The present value in the life and health insurance sector (value of
in-force business/VIF) rose by 17.3 per cent to EUR 1,847,1 million
(2014: EUR 1,573,8 million).

UNIQA CFO/CRO Kurt Svoboda commented: "For UNIQA, the embedded value
remains a key analysis and management tool as defined in
value-oriented management, particularly in the current economic
environment and the requirements laid down in Solvency II. In
addition to what is certainly a positive development in a difficult
environment, we are particularly pleased that the earnings strength
of our new products has seen another increase. Good capital ratios
are also a basis for our progressive dividend policy."

The new business margin - a key figure for profitability - improved
to 2.4 per cent (2014: 1.7 per cent). For CEE, it remained at a high
profit level of 6.0 per cent in 2015 (2014: 5.9 per cent).
Development in Italy was particularly encouraging, where a new
product generation made a significant contribution to an improvement
in profitability to 2.0 per cent (2014: 0.6 per cent).

Capital ratios remain high

The economic capital ratio of the UNIQA Group, which serves as an
indicator of capitalisation, was at a sound level of 182.2 per cent
at 31 December 2015 based on the internal management approach. This
represents a year-on-year improvement by more than 30 percentage
points. In addition to the subordinated loan of EUR 500 million
issued in the past year, operating improvements relating to costs,
expected future benefits and profitable new business in particular
had a positive effect on capitalisation. "Over the course of 2015,
UNIQA achieved the capital strength it had planned in the medium term
and exceeded the internal target of 170 per cent for the first time.
Furthermore, government bonds that could be measured on a risk-free
basis in accordance with Solvency II are still backed with risk
capital at UNIQA. We are also particularly cautious in the asset
classes for which the EIOPA standard approach provides for relief we
do not make use of. The current annual result and our healthy equity
position are giving us the strength to make necessary investments in
our future in order to remain fit to market in the long term." The
regulatory capital ratio in accordance with Solvency II (EIOPA
standard approach) is 195 per cent as at 31 December 2015. This is
around 13 percentage points above the economic capital ratio managed
internally, predominantly based on backing with government bonds,
which is taken into account in the internal UNIQA approach.

The economic capital ratio, for which UNIQA does not use transitional
provisions and which represents the relation of economic capital of
EUR 5,205,2 million (2014: EUR 4,080,0 million) and the economic
capital requirements of EUR 2,856,9 million (2014: EUR 2,722,3
million). The ratio is calculated using the internal capital
approach. Economic capital combines tier 1 capital (core capital) and
tier 2 capital (subordinated capital), while the economic capital
requirements represent the theoretical loss in the event of an
extreme stress scenario.

The market-consistent embedded value and the economic capital ratio
of the UNIQA Group were audited in full by B & W Deloitte GmbH,
Cologne.

Final Key Group figures for 2015

Premiums written - including the savings portion of unit- and
index-linked life insurance - increased by 4.3 per cent to EUR
6,325.1 million (2014: EUR 6,064.4 million).

Retained premiums earned in accordance with IFRS (i.e. not including
the savings portion of unit- and index-linked life insurance) grew by
6.0 per cent to EUR 5,633.5 million (2014: EUR 5,312.9 million).

Retained insurance benefits increased by 5.1 per cent to EUR 4,607.6
million (2014: EUR 4,383.7 million), growing somewhat slower than
premiums earned. Life insurance benefits saw significant growth of
12.3 per cent from EUR 1,879.6 million to EUR 2,111.2 million), as
provisions for future benefits increased significantly as a result of
higher premium income in life insurance.

Operating expenses less reinsurance commissions and profit shares
from reinsurance business ceded developed positively. In 2015,
expenses remained on a par with the previous year at EUR 1,298.7
million (2014: EUR 1,299.1 million). Administrative expenses declined
by 3.5 per cent to EUR373.1 million (2014: EUR 386.6 million) due to
the consistent implementation of cost management as part of the UNIQA
2.0 strategy programme. Acquisition expenses increased by 1.3 per
cent to EUR 950.4 million (2014: EUR 938.6 million), considerably
less than premium income.

The consolidated cost ratio after reinsurance improved to 21.3 per
cent (2014: 22.2 per cent) as a result of unchanged costs concurrent
with increased premiums.

The combined ratio in property and casualty insurance after
reinsurance improved to 97.8 per cent (2014: 99.6 per cent) and was
below 100 per cent in all three operating segments (UNIQA Österreich:
93.9 per cent; Raiffeisen Versicherung Österreich: 82.7 per cent;
UNIQA International: 99.1 per cent).

Investments, including investments held on account and at risk of
life insurance policyholders, increased by EUR 391.1 million as
against the end of the last reporting period to EUR 29,416.1 million
(31 December 2014: EUR 29,024.9 million). Net investment income
decreased by 6.4 per cent to EUR831.1 million (2014: EUR 888.2
million). The ongoing low interest rates had a particularly negative
impact here.

The technical result of the UNIQA Group increased significantly by
56.5 per cent to EUR 199.9 million in 2015 (2014: EUR 127.7 million).

Operating profit increased by 10.4 per cent to EUR 494.1 million
(2014: EUR 447.6 million).

Earnings before taxes was very gratifying, primarily due to the good
performance in the property and casualty insurance and health
insurance segments, and increased by 11.9 per cent to EUR 422.8
million (2014: EUR 377.9 million). However, the low interest rates
had a negative impact on the life insurance segment.

Consolidated profit amounted to EUR 331.1 million (2014: EUR 289.9
million). Earnings per share climbed to EUR 1.07 (2014: EUR 0.94).
The return on equity after taxes and minority interests amounted to
10.6 per cent in the reporting year (2014: 9.9 per cent).

The UNIQA Group's equity increased by 2.3 per cent or EUR 70.5
million to EUR 3,152.7 million (31 December 2014: EUR 3,082.2
million).

The number of customers served by the UNIQA Group companies in 19
markets was more than 10 million at the end of 2015.

Forward-looking statements This press release contains statements
concerning UNIQA's future development. These statements present
estimates which were reached on the basis of all of the information
available to us at the present time. If the assumptions on which they
are based do not occur, the actual results may deviate from the
results currently expected. As a result, no liability is accepted for
this information.

UNIQA The UNIQA Group is one of the leading insurance groups in its
core markets of Austria and Central and Eastern Europe (CEE). 22,000
employees and exclusive sales partners serve more than 10 million
customers in 19 countries. UNIQA is the second-largest insurance
group in Austria with a market share of around 22 per cent. UNIQA
operates in 15 markets in the CEE growth region: Albania, Bosnia and
Herzegovina, Bulgaria, Croatia, the Czech Republic, Hungary, Kosovo,
Macedonia, Montenegro, Poland, Romania, Russia, Serbia, Slovakia and
Ukraine. The UNIQA Group also includes insurance companies in Italy,
Switzerland and Liechtenstein.

Further inquiry note:
UNIQA Insurance Group AG
Norbert Heller
Tel.: +43 (01) 211 75-3414
mailto:norbert.heller@uniqa.at

end of announcement euro adhoc
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company: UNIQA Insurance Group AG
Untere Donaustraße 21
A-1029 Wien
phone: 01/211 75-0
mail: investor.relations@uniqa.at
WWW: http://www.uniqagroup.com
sector: Insurance
ISIN: AT0000821103
indexes: WBI, ATX Prime, ATX
stockmarkets: official market: Wien
language: English